The two boards of Greencore and Bakkavor have reached an agreement on the essential financial terms of a transformative deal, proposing the formation of a combined convenience foods enterprise projected to generate a turnover of approximately £4 billion.
Recent reports indicate that Greencore presented a third offer after its prior proposal of about £1.14 billion faced rejection on March 10.
However, it is important to note that this transaction is contingent upon the finalization of other terms and obtaining necessary regulatory approvals.
The bid values Bakkavor at 85 pence per share, along with an offer of 0.604 Greencore shares for every share held, approximating a total value of £1.2 billion. The Bakkavor board has unanimously recommended this offer to its shareholders.
Upon completion of the deal, Greencore shareholders would possess roughly 56% of the combined group, while Bakkavor shareholders would retain the remaining 44% stake.
Greencore recently enhanced its profit forecasts following sustained sales momentum during Q2; however, it emphasized that this improvement is not directly related to the ongoing negotiations with Bakkavor. For the fiscal year ending September 26, 2025, Greencore expects operating profit to fall within the range of £112 million to £115 million.
Headquartered in Dublin, Greencore provides a diverse array of products—including sandwiches, salads, sushi, soups, and sauces—to all major supermarkets throughout the UK.
Conversely, Bakkavor operates 41 sites across the UK, US, and China, employing nearly 17,200 people. It offers approximately 3,500 products spanning multiple categories to leading UK supermarkets, with around 85% of its revenue originating from its UK operations.
In the fiscal year ending December 28, 2024, Bakkavor reported revenues amounting to £2.3 billion.
